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TMI Blog2024 (12) TMI 347X X X X Extracts X X X X X X X X Extracts X X X X ..... I Gautam Budh Nagar holding as follows has been upheld: "ORDER 1. I disallow the CENVAT credit amounting to Rs. 4,50,543/- (Rupees four lakh fifty thousand five hundred forty three only) and order for its recovered from them under Rule 14 of the CENVAT Credit Rules, 2004 read with Section 11A of the Central Excise Act, 1944, and Section 73 of The Finance Act, 1994. 2. I order for recovery of interest at appropriate rates, as applicable, on the amount at SI.No.[1] above under Rule 14 of the CENVAT Credit Rules, 2004 read with Section 11AA of the Central Excise Act, 1944 and Section 75 of The Finance Act, 1994.; 3. I impose a penalty of Rs:4,50,543/- (Rupees four lakh fifty thousand five hundred forty three only) upon them under Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be disallowed and recovered from them under Rule 14 of the CENVAT Credit Rules, 2004 read with Section 11A of the Central Excise Act, 1944, and Section 73 of The Finance Act, 1994, and amount of Rs. 17,273/- already deposited vide GAR-7 Challan No. 00152 dated 06.07.2018, should not be appropriated; (ii) Interest on aforesaid amount as at SI, No. (i) above, at applicable rate, should not be deman ded and recovered from them under Rule 14 of the CENVAT Credit Rules, 2004 read with Section 11AA of the Central Excise Act, 1944 and Section 75 of The Finance Act, 1994 and amount of interest Rs. 5,027/-, already deposited vide aforementioned challan, should also not be appropriated.; (iii) Penalty should not be imposed upon them under Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arketing, thus forming a part and parcel of their manufacturing set up; orders were taken from that office, customer's requirements and specifications are also managed from that office only. It was further submitted that rent agreement is made firmly on standard terms wherein the terms and conditions between lessor and lessee are mentioned. They had Centralized billing system only at D-73, EPIP, Greater Noida and they did not issue any bill from Delhi office and thus input credit of services used in that office is also taken at their registered office viz. D-73, EPIP. Greater Noida 5.2 In view of the definition of Input Service, the input credit of Service Tax is admissible only when the service is used as input service for providing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contended that bill was including security personnel employed at D-73 as well as D-71. In their letter dated 28,05.2018 they accepted that they availed security services in their unit situated at D-71. In their written brief dated 27.11.2018, it was submitted that they have made a distinction and paid the required amount of Cenvat credit availed with reference to D-71 of Rs. 56,108.00 (Service Tax Rs 45852 + Intstt. Rs. 10256) on the basis of proportion of distribution of security services at D-73 and D-7 1 5.4 On perusal of the challan vide which an amount of Rs. 56108/- was deposited, it came to notice that the appellant had deposited the said amount of Service Tax for providing taxable services namely: Business Auxiliary Services (Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his issue was considered by a Division Bench of the Tribunal in Rajender Kumar & Associates, and after placing reliance upon the decision of the Karnataka Service Tax Appeal No. 70576 of 2013 High Court and decisions of the Tribunal, the Division Bench observed as follows: "15. The registration of premise with the Service Tax Department is not a condition for availing CENVAT credit. 16. The Karnataka High Court in MPortal India Wireless Solutions (P) Limited held that there is no requirement in law that the premises should be registered for availing CENVAT credit and the relevant portion is reproduced below: "7. Insofar as requirement of registration with the department as a condition precedent for claiming CENVAT credit is concerne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9-7-2013. Further it has been certified by the C.A. that invoices for output service rendered from Stellar Park, was raised from the Registered Office at Noida. That as per Rule 3 of CCR, 2004, there was no condition precedent, that input service have to be received at Registered Premises, only of the output service provider. Further reliance is placed on the ruling of Hon'ble Karnataka High Court in mPortal India Wireless Solutions (P) Ltd. v. CST, 2012 (27) S.T.R. 134 (Kar.) and of Hon'ble Bombay High Court in Deepak Fertilizers & Petrochemicals Corporation Limited v. CCE, 2013 (32) S.T.R. 532 (Bom.). Considering the rival contentions, following the rulings of Karnataka High Court and Bombay High Court (supra), this ground is rejected. It ..... X X X X Extracts X X X X X X X X Extracts X X X X
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